Creating a comprehensive company handbook is essential for any business, big or small. Not only does it provide vital information for employees, but it also serves as a reference point for company policies, procedures and expectations. However, creating a handbook from scratch can be a daunting task. Where do you start? What should you include? And how do you make sure your employees actually read it? In this guide, we’ll take you through the steps you need to create a company handbook that is informative, engaging, and useful for your employees.
Why do you need an employee handbook?
You are not required by law to publish an employee handbook, but employment law does require businesses to communicate all policies and procedures to their staff. Rather than creating a myriad of disparate policies, a handbook collates this information in one central location. It also minimises the risk for misinterpretation and disputes if your business was ever taken to court by an employee.
Read our guide to why you need a company handbook.
If you’re creating a handbook from scratch, it’s a great way to communicate your brand to new employees. It can also be a useful exercise in creating those HR policies your business needs but may not yet have in place.
Your handbook doesn’t need to be produced by a legal professional, but it’s a good idea to have your HR contracts and policies checked over by an HR/employment law professional.
What to include
A few key elements every company handbook should include:
- Welcome message: a friendly welcome message from the company founder / MD is a nice opener to a document designed to showcase your business, motivate and retain your staff.
- Company background: keep it short and sweet. Give employees a snapshot of your company, its ethos and achievement.
- Policies and procedures.
You may also want to think about:
- Recruitment & pay
- Health & safety
- Probationary period
- Holiday, sickness & absence
- Maternity/paternity
- IT & social media
- Employee details and confidentiality
- Whistleblowing
- Disaster contingency
- Drugs & alcohol misuse
- Benefits packages: such as pensions, childcare vouchers and other incentives your business offers.
- Training and development schemes: appraisals, training opportunities and feedback.
- Notice periods and leaving process: exit interviews and procedures.
- Key company contacts: those who take on responsibility for HR.
How to create a company handbook
You don’t need to spend money on designing and printing a fancy document. You can create the handbook in Word using your company logos and headers, and then save it to a PDF (so it’s not editable).
There are also some great tools around to make professional-looking designs, such as Air Mason or free online templates. Use pictures to break up the text, but don’t forget to check copyright licensing if you’re taking images from the internet.
If it seems like a lot of hard work, you can also outsource the entire job. Most outsourced HR providers can provide you with a handbook (or template) for a one-off fee.
Remember to use simple language, avoiding jargon or acronyms. Staff are more likely to read an easy-to-digest document. The Plain English Campaign has some great suggestions for using easy-to-read language in corporate documents.
Don’t forget to include a content or index page so that staff can find what they are looking for quickly.
How to use a company handbook
- Make sure the handbook is part of the new employee induction process. Provide them with a printed version and let them know where it’s saved.
- You could consider holding a quiz as part of the induction process to check your new starter has read it.
- If you’re introducing a handbook for the first time, brief staff on its contents and why they need to read it.
- Your employee handbook is your company culture and brand, so make sure it reflects everything you want your business to be.
What are the alternatives to a company handbook?
Increasingly popular, a Culture Book is a creative alternative to the traditional company handbook. It typically offers a unique insight into a business for new joiners. It can work particularly well for creative businesses that want to move away from more formal means of presenting policies and procedures and expressing the company’s values and ethos.
You can also read our blog on Enterprise Nation on how to create a culture book.
Key Takeaways
- While not legally required, a company handbook centralises all workplace policies and procedures in one location, reducing misinterpretation risks and potential legal disputes.
- An effective handbook should include a welcome message, company background, comprehensive policies, benefits information, and key contact details.
- Create your handbook to reflects your company’s brand and culture.
- Use clear, jargon-free language to increase readability and employee engagement with the document.
- Include essential policy sections covering recruitment, health and safety, leave policies, IT guidelines, and confidentiality requirements.
- Make the handbook easily accessible by providing both printed and digital versions to all employees.
- Incorporate the handbook into your onboarding process, possibly with a quiz to ensure new hires have reviewed the content.
- Consider alternatives like a Culture Book for creative businesses that want to present policies in a less formal way.
- Update your handbook regularly to reflect changes in company policies, procedures, or legal requirements.
- While you don’t need a legal professional to create the handbook, having your HR policies reviewed by an HR or employment law specialist is recommended.
For support with creating your company handbook from our team of HR Consultants, you can find out about how to work with Bespoke HR here.